India: Spinners will be hit by higher MSP

As the Indian government raised the minimum support price for cotton, Indian spinning mills are expected to be hit hard.　　 Textile mills are facing a variety of challenges, including the decline in domestic and international market demand for fabrics and clothing due to the Covid pandemic.　　 However, a higher MSP will help farmers increase planting coverage in the kharif season starting in October. The MSP of the 　　 Medium-staple variety increased by Rs 260/candy to 5515 rupees/candy, and the MSP of the Long-staple variety increased by Rs 275/candy to 5825 rupees/candy, an increase of 5% over the cotton year that ended in September.　　 ICRA rating agency head Jayanta Roy said that this move will benefit farmers who will start harvesting in October.　　 The increase in MSP before planting and the timely arrival of the rainy season are conducive to cotton planting.　　 Although significant cotton planting has not yet begun in key areas of the western and southern regions, preliminary planting in the northern region indicates that the planting area is even higher this year. Nevertheless, cotton crops are still extremely vulnerable to pests, and yields will also be affected. The locust swarm entered India in mid-May and has already attacked several areas in western and northern India, including Rajasthan. Because locusts feed on a variety of crops, they also pose an imminent threat to crops.　　As cotton consumption may see a double-digit decline, cotton inventory levels are expected to rise sharply. Article keywords: 　Indian yarn mills